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3.4.3   Redemption of Debentures

                       Debentures may redeemed at the issue or face value, below or above the issue value.
               The financial reporting standards require the discounts and premiums to be amortized over the

               loan term if they were measured at amortized costs.
               On redemption date the company will discharge the liability. Where a liability instrument is

               redeemed, there is no requirement to replace the liability.


               3.4.4   Convertible Loan Stocks

                       Convertible loan stocks and debentures are referred to as compound instruments. There
               have features of both liability and equity. The proceeds of the issue of the convertibles are split

               between  the  equity  and  liability  components,  which  are  determined  on  the  issue  of  these

               compound instruments.
               For instance, if the proceeds of the convertible loan instrument are 20 million and the liability

               component is calculated to be RM18 million, then the equity is the residual amount of RM2
               million.
































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